“INTRNSIC & EXTRNSIC REWARDS”

HUMAN RESOURCE MANAGEMENT

ASSIGNMENT

NAME: ARHAM RIZWAN

CLASS: BBA-37

ROLL NO: S-72017

SUBMITTED TO: MAM SABA

REWARD;

Reward Management is concerned with the formulation and implementation

of strategies and policies that aim to reward people fairly, equitably and
consistently in accordance with their value to the organization

OBJECTIVES OF REWARD MANAGEMENT:

Support the organisation’s strategy

Recruit & retain.

Motivate employees.

Internal & external equity.

Strengthen psychological contract.

Financially sustainable.

Comply with legislation.

Efficiently administered.

Basic Types of Reward;

 Extrinsic rewards

–        satisfy basic needs: survival, security

–        Pay, conditions, treatment

 Intrinsic rewards

–        satisfy higher needs: esteem,development

Rewards by Individual, Team, Organization;

 Individual: base pay, incentives, benefits

–        rewards attendance, performance, competence

 Team

–        team bonus, rewards group cooperation

 Organisation

–        profit-sharing, shares, gain-sharing.

Intrinsic Rewards :

 It includes all activities that have an impact on the intellectual , emotional ,
and physical well being of an employee and is not specifically covered by the
extrinsic compensation system .

 It is the least costly and one of the most powerful rewards of the
organization .

 It can be done by simply putting a pat on the back of the employee

thereby recognizing them as useful and valuable contributors .

 This kind of recognition leads to employee feeling of self worth and

pride in making contributions .

 It can be done by providing a healthy and safe working environment to

the employees.

 More focus should be given on improving quality of work life of

employee .

 Employees feel free to choose the way of working , work from home
facility comes under the type of reward .
  Another kind of intrinsic rewards are career growth paths of employees
and enhancing their employ-ability.

Give employees more autonomy.

Employees crave control and allowing them to take responsibility for their job
and tasks (and ditching a micromanagement approach) will empower
employees to take ownership and pride in their work and see to it that projects
are completed with excellence.

Empower your employees to be self-fulfilled and purpose-driven.

Employees want to make a difference. Developing an authentic culture of

purpose that your employees rally around and believe in is vital. A great first
step is hiring motivated, purpose-driven individuals.

 Provide opportunities for advancement.

Employees want to progress and achieve. Human beings – not just employees
– do more and produce better work when they are making progress on
something they care about. So, when trying to motivate employees, give them
a clear career path and let them stretch themselves and demonstrate their skill
set.

 Promote social interaction.

Employees want to connect with their colleagues, especially those on other

teams or in different departments. By encouraging employees to hang out or
conduct business in areas other than their desks, and by allowing them to take
a break and get out of the office to go do something fun together, they can
connect, interact, care, share, be recognized, seek to understand others and so
on.
Extrinsic Rewards : They are tangible rewards given to the employees by the
managers . it mainly  consists of the following :

Basic pay wages and salary add-ons , Deferred payments ( pension plans ,
supplementary income plans etc ) , services and benefits ( accommodation ,
medical benefits group insurance , conveyance etc ) , pay for work not done
( gazetted holidays , leaves etc) .

Objectives that guide the design of compensation system :

 Individual Equity;
 To establish a fair and equitable remuneration offering a similar
pay for similar work .
 To attract qualified and competent personnel .
 External Equity; 
 To retain present employees by keeping wage level in tune with
the competitors .
 To control labor cost and administrative cost in line with ability of
the organisation to pay .
 To improve motivation and morale of employees and to improve
union management t relations.
 To project a good image of the company and to comply with legal
needs relating to wages and salaries .
 To comply with legal rules .compensation   programmes must
invariably satisfy governmental rules regarding minimum wages ,
bonus , allowance etc.
 Ease of operation . the compensation management system should
be easy to understand and operate . then only it will promote
understanding regarding pay relation matters between employees
, unions and managers .
  Reward new and desired behaviour . pay should reward loyalty ,
commitment , experience , risk taking initiative and other desired
behaviours .
 Internal Equity 
 This ensures that more difficult jobs are more
 seniority of employee should take into considerations .